Fed Sets Reserve-Balance Rate at 3.90%, Effective Oct. 29

The interest rate paid on reserve balances is 3.90%, effective Thursday, Oct. 29. The Board’s decision accompanied the Federal Open Market Committee’s vote to leave the federal funds target range at 3.75% to 4% on Wednesday.

The FOMC approved the hold by a 10-2 vote. Cook and Hammack cast the two dissenting votes, supporting a quarter-point increase.

The committee also reiterated its intention to keep reserve supplies in the banking system ample. The FOMC’s rate decision and dissents were announced at 2 p.m. ET (18:00 UTC).